As the war in Iran enters its second week, markets continue to react to the escalating geopolitical tensions. The Rand has weakened further, currently trading at 16.84 per US dollar. In the rates market, the 2-year swap has moved up to 6.75%, while the 3-year is trading at 6.82%. Oil prices have also surged, with Brent Crude currently trading at $109. These moves pose potential risks to South Africa’s growth and could place pressure on the country’s inflation outlook.
On the economic calendar, it is a relatively quiet week. The only notable release comes from the United States, where CPI (YoY) data is due. Economists expect inflation to remain unchanged at 2.4%.
